NSW opposition wants inquiry into power sale

The NSW opposition says it will set up a judicial inquiry to investigate the NSW government’s sale of $5.3 billion of electricity assets, which triggered mass director resignations at two state-owned energy companies on Tuesday.

Opposition leader
Barry O’Farrell
urged the government to set up the inquiry itself and halt the sale process in the meantime.

“Kristina Keneally must establish a full judicial inquiry to investigate all the issues surrounding yesterday’s extraordinary events," Mr O’Farrell said in a statement.

“If Ms Keneally fails to establish this inquiry, the NSW Liberals & Nationals will do so, if elected in March."

“I will bring the findings to the Parliament and reserve the right to use whatever remedies are available to protect the interests of the people of NSW."

Mr O’Farrell’s call for an inquiry follow comments from Shadow Treasurer Mike Baird in The Australian Financial Review on Wednesday that a Coalition government would explore all of its options in a bid to “undo the transaction."

“They have thrown away billions of dollars and not maximised competition to put downward pressure on prices," Mr Baird said.

Mr O’Farrell also accused NSW Treasurer
Eric Roozendaal
of stacking the state-owned company boards to obtain the required approvals of the sale.

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“In a move reminiscent of a banana republic, Eric Roozendaal last night appointed former Labor ministers and mates as new board members to ram the deal through."

The government announced late last night that Origin Energy agreed to pay $3.25 billion for two retailers Country Energy and Integral Energy and the Eraring gentrader contract. Hong Kong-owned TRUenergy will pay $2.04 billion for the state’s biggest retailer, Energy Australia, the Delta West gentrader contract and two Marulan development sites. It will also pay an additional $240 million for capital improvement at the Wallerawang power station.

However, the sale was almost derailed after a mass resignation of directors from the boards of Delta and Eraring late on Tuesday. Eight out of 13 board members resigned, including former state Olympics minister Michael Knight and former Roads and Traffic Authority chief Paul Forward.

Mr Roozendaal was forced to appoint two new directors to each of the Eraring and Delta boards to get the sale through. The bureaucrat heading the electricity privatisation process, Col Gellatly, was appointed to the Eraring board along with fellow public servant Jan McClelland. Another former senior public servant, John Dermody, and the former minister Kim Yeadon, who were also advising on the electricity sale, were appointed to the Delta board. After a ministerial directive from Mr Roozendaal, the sale was then approved.